Ports of Tauranga

[Winston001]

Yes same here on the Mainland. Receivers have just announced closure of Southern Cross mills in Mosgiel and Balclutha.

http://www.scoop.co.nz/stories/BU140...-australia.htm

Its frustrating that NZ cannot add much value to what we produce - we are still a raw commodities exporter. There are two reasons (maybe more):

1. Buyers won't pay the landed price for our product (manufacturing plus labour plus shipping). Or they can't pay the price.

2. Buyers of unprocessed raw product have millions of workers very keen to earn $5/day adding the value at their end. And sometimes selling the results back to us.

Funny old world.

[Arbitrage]

However there are some wood products we do very well. Customwood particle board from near Christchurch is a good example. The dairy industry adds value to basic milk and the wine industry adds value to grapes. NZ Inc should focus on adding value to raw materials and targeting high value/margin products. Some segments already do this but there is still a lot more potential. All of which would help POT continue its upward march.

[blocker3]

However there are some wood products we do very well. Customwood particle board from near Christchurch is a good example. The dairy industry adds value to basic milk and the wine industry adds value to grapes. NZ Inc should focus on adding value to raw materials and targeting high value/margin products. Some segments already do this but there is still a lot more potential. All of which would help POT continue its upward march.

Yes it would help POT in the Upward march Arbitrage. Unfortunatly POT can only be the link gateway to the world for both inports and exports as the service provider.

[macduffy]

The call for adding value to NZ's commodity exports isn't new. In the 1960's when Britain's membership of the EU looked to become a reality it was a hot topic of debate, together with a drive to diversify into new export fields and import substitution industries. Which is how we came to have such expensive distractions as further motor vehicle assemblers and a nylon yarn mill. But that's another story. The key point was, and still is, that we need to produce what the customers want and will pay for. If that means logs rather than particle board or milk powder rather than fancy cheeses or yoghurt, then ..........

[Joshuatree]

However there are some wood products we do very well. Customwood particle board from near Christchurch is a good example. The dairy industry adds value to basic milk and the wine industry adds value to grapes. NZ Inc should focus on adding value to raw materials and targeting high value/margin products. Some segments already do this but there is still a lot more potential. All of which would help POT continue its upward march.

You are a dead ringer for Rod Oram

[traineeinvestor]

This maybe a silly question, but is more value added actually going benefit or hurt POT? If adding value reduces the physical bulk of the goods shipped through the port then there would be a reduction in the number or size) of the ships being serviced which would mean less revenue? As a simple example, sawn timber takes up less space on a ship than unprocessed logs.

I'm no expert on this stuff, so please feel free to point out where the logic breaks down.

[blocker3]

This maybe a silly question, but is more value added actually going benefit or hurt POT? If adding value reduces the physical bulk of the goods shipped through the port then there would be a reduction in the number or size) of the ships being serviced which would mean less revenue? As a simple example, sawn timber takes up less space on a ship than unprocessed logs.

I'm no expert on this stuff, so please feel free to point out where the logic breaks down.

Simple answer traineeinvestor no benefit, no hurt. POT will ship logs out all day long as "that is what the buyer wants"

Just like Northport another buzzing log port of logs ( 50% owned by POT)

Cheers

[Arbitrage]

You are a dead ringer for Rod Oram

Yes I like some of Rods think pieces but dislike others. It is great we have a commentator like him in this country.
However, adding value may benefit NZ Inc, especially in high value products, but POT just wants to get as much stuff across its wharves as soon as possible. So a bit of a conflict there as a kiwi wanting the country to increase its export margins and as a POT shareholder wanting the turnover.

[blocker3]

Yes I like some of Rods think pieces but dislike others. It is great we have a commentator like him in this country.
However, adding value may benefit NZ Inc, especially in high value products, but POT just wants to get as much stuff across its wharves as soon as possible. So a bit of a conflict there as a kiwi wanting the country to increase its export margins and as a POT shareholder wanting the turnover.

Hi Arbitrage Quote "However, adding value may benefit NZ Inc" is a great concept and is good for NZ. I would love to see more added value product leaving NZ shores.

However with logs ,the saw mill companys here in NZ generally do not own the logs growing. They have to compete with the export log price for "$ and volume". and then have to make a respectible margin in between.

This is where outside country's steam roll us and buy logs in vast volumes . A viscious circle.

So as per my comment above "POT and other ports will ship logs out all day long as that is what the buyer wants"

Cheers

[percy]

Where is the other POT thread.?????
It had a lot more information on it.!